Can post redundancy commission be counted as tax free redundancy pay?

DominicOR

I was made redundant last year. My employer agreed to 3 months redundancy payment, and agreed to pay commission on a number of deals which would not have been due until later if I had remained with them.
The redundancy amount was less than the tax free limit of 30k.
Since the commission was discretionary, and paid following my departure, with the redundancy, Am I entitled to count it as a 'redundancy' payment, and therefore part of the tax free limit?
Obviously this could be quite a big tax difference, so I don't want to get it wrong.

McKneff

I woulnt have thought so. Commission is earnings, simple as that

sangie595

And I would have said not. Earnings are taxable, and earnings are neither a redundancy nor a PILON payment - plus the termination was last year, so at least four months ago.

But I wouldn't rely on guesses - ask HMRC.

getmore4less

How was it documented?

LittleVoice

It it was described as commission then it was as a result of your employment, not a result of your dismissal on the grounds of redundancy. So taxable as earnings.

DominicOR

It was documented as commission. But in reality it was completely arbitrary,

getmore4less

DominicOR wrote: »

It was documented as commission. But in reality it was completely arbitrary,

Probably too late now as commission will be clearly earned income.

It could have been absorbed into a payoff as the package as long as the contract and commission scheme had clauses that did not make it contractual(even if discretionary) after you had left.